Indonesian firm in ‘StanChart’ probe removed founders last yr

JAKARTA, Sept 28, (AFP): An Indonesian power company said Wednesday it had removed its founders last year and takes seriously allegations of “improper behaviour” after revelations US justice officials are probing Standard Chartered over suspected bribery at the firm.

London-based, Asia-focused Standard Chartered, which controls the MAXpower Group, acknowledged Tuesday it was being investigated by the US Department of Justice over claims the Indonesian company had paid kickbacks to secure contracts.

The bank said it had referred the matter to the “appropriate authorities” and launched its own review.

The Wall Street Journal said that an internal audit at MAXpower found evidence of possible bribery and US prosecutors were examining whether Standard Chartered was culpable for not stopping it.

MAXpower said in a statement that it “takes any allegations of improper behaviour very seriously”, adding it had removed its three founders from day-to-day management of the business in mid-2015 before terminating their employment in December.

“Since the restructuring of the company’s shareholding and management in mid-2015, the company has implemented robust remedial actions including enhanced internal controls,” it said.

“We have engaged and continue to work with professional advisory firms to fully investigate issues and questions that have been raised.”

The company, which builds power plants in Southeast Asia, added the allegations in the report “provide a one-sided and partial view of the operations and events at MAXpower and as such do not give a full, or true view”.

Standard Chartered began investing in MAXpower in 2012 and is the majority shareholder.

The Department of Justice did not comment when contacted by